Farmers face one of their biggest ever super levy challenges
This is no surprise, because going over quota seems to be encouraged by many in the industry for the past few years.
Here’s what I advised on this page in 2013.
“As every dairy farmer knows, they will be restricted by milk quotas until March 31, 2015, unless there is some unexpected change in the minds of our EU masters.
“Farmers should avoid the stress and losses of trying to avoid paying super levy in the meantime.
“Effectively, early spring milk supply, which will be important with the new pricing arrangements, should not exceed quota until the 2016/17 season.”
But farmers have been widely advised to have extra heifers calving down in the early spring of 2015.
How often have you heard that 2013 calves will not be restricted by quota? But they will be, unless they calve late in March, 2015, or close to 3-years-old in 2016, neither of which is satisfactory.
Perhaps some well-bred late 2013 calves could be carried over to calve early in 2016, or used in autumn calving herds in 2015.
Farmers should be breeding plenty well-bred AI heifers, but not for keeping surplus cows in their own herds in preparation for the end of quotas. They will be very valuable for establishing really good healthy herds, or for sale.
Unfortunately, some farmers are holding on to too many cows for their available quota, and this will cause problems before next March.
In addition, due to pressure from farm organisations, the Department of Agriculture dished out quota and financial assistance to new entrants too far ahead of the end of quotas.
This year’s good grass growing season has no doubt contributed to the over-quota supply, but even if it was a bad weather year, there would still be a problem due to the number and quality of dairy cows in the country.
The Minister and all concerned are doing their best to get some over quota relief from the EU, but the results are not encouraging.
And there are no satisfactory solutions for farmers who are seriously over quota.
The best that can be done is damage limitation.
Farmers who are 10% to 15% over quota can satisfactorily farm their way out of the problem.
They should feed surplus silage to cows rather than concentrates , if grass is scarce.
Problem cows should be sold, while prices are reasonable.
Once-per-day milking will reduce milk production about 15%, but will cause mastitis/SCC problems, unless SCC levels in all cows are very low.
Feeding milk to calves, and feeding low protein concentrates to cows next spring, will significantly reduce deliveries. Selling (or leasing) surplus dairy stock may also be an option for some farmers.
As usual, very early drying off will be the option selected by most, but of course this results in a big loss of income. All available combinations of options should be used, but they are only damage limitation for those seriously over quota.
